American Airlines is to end codeshare agreements with Etihad and Qatar Airways, as part of its ongoing dispute regarding state subsidies given to the major Gulf carriers.

In a statement AA said that “Given the extremely strong public stance that American has taken on the ME3 issue, we have reached the conclusion that the codesharing relationships between American and these carriers no longer make sense for us”.

“This decision has no material financial impact on American and is an extension of our stance against the illegal subsidies that these carriers receive from their governments.

“We are committed to doing everything we can to continue to support our team members and ensure that there is fair competition between American and the Gulf carriers.”

The existing codeshare deals will end on March 25, 2018.

In response Qatar Airways’ CEO Akbar Al Baker said that the move would not affect the Gulf carrier’s decision to purchase a 10 per cent stake in AA.

“Our stock purchase request and filing is going ahead as normal,” said Al Baker. “We had to clarify certain questions of the regulator, which we compiled with”.